Which factors are crucial for improving productivity and expanding economic growth?

Increasing capital expenditure and acquiring new technology are both vital for enhancing productivity and promoting economic growth.

When organizations invest in capital expenditures—such as infrastructure, machinery, and equipment—they enhance their capacity to produce goods and services efficiently. This often leads to improved operational processes, higher output, and ultimately a boost to the economy through increased employment opportunities and consumer spending.

On the other hand, acquiring new technology facilitates innovation and efficiency. Technological advancements can streamline operations, reduce costs, and introduce new products to markets, which can significantly enhance productivity. This, in turn, contributes to economic growth as businesses gain the ability to compete more effectively and respond to consumer demands.

While avoiding new debt can be a prudent financial strategy, it may not directly contribute to productivity or growth in the same way as capital investment and technology acquisition do. Therefore, the combination of increasing capital expenditure and acquiring new technology is crucial, making them equally important factors in driving economic advancement.